The Indian residential real estate sector has been in the throes of a rapid evolution over the last few years or so. It all started with a massive clean-up with measures such as demonetization and GST which ushered in greater transparency and rid the sector of its negative image as a magnet for black money and under-table deals. Thereafter, the Indian Government boosted demand in the market with its emphasis on affordable housing and the benefits given under the Pradhan Mantri Awas Yojana (PMAY) within the umbrella of the Housing for All by 2022 mission.
There have been subsequent budgetary announcements pertaining to increased tax benefits on affordable homes, incentives for second home ownership and rental investments alike and also a cut in GST for affordable and regular housing units alike. The Government has also been striving to address the liquidity crunch in the sector along with strengthening its focus on infrastructure development which will naturally aid the sector going forward.
Yet, there are new residential real estate trends that have been taking the market by surprise in recent times. Here are the top 5 trends that you should certainly be aware of:
Millennial buying activity increases
The biggest trend arguably in the current residential real estate landscape is the growing predominance of millennial buyers. Going by the fact that over the next decade, India will have one of the youngest global populations, real estate developers are steadily embracing this whole new audience base that they now have to cater to. The biggest game changer for the residential segment is that more millennials right from 25-35 are increasingly investing in real estate or buying homes for end-use.
Young and successful professionals in their early 30s or late 20s are now in a financial position to buy their own homes, something which was not as seamless for the previous generation. These people have access to ready credit through easy home loans and are also inclined towards opting for affordable housing benefits, interest subsidies, lower rates of interest on home loans and other advantages in terms of tax benefits. These are buyers who love traveling and have major exposure when it comes to top-class architecture and design. Millennial buyers place high emphasis on safety, connectivity, technology and good amenities and facilities. As a result, real estate developers are now having to pull up their socks in terms of offering high-quality lifestyles to this growing segment of consumers.
Sustainable and eco-friendly living
Eco-friendly and sustainable living is well on its way towards becoming a key buzzword in the current scenario. Clean air to breathe, natural greenery, clean water, sewage treatment, water recycling, rainwater harvesting and other sustainable concepts have caught the fancy of modern buyers and with growing environmental concerns, this trend will remain firmly entrenched for the future.
Sustainable designs involving growing plants on terraces, walls and roofs and also green spaces, double-height windows and energy efficient appliances and electricals are increasingly popular with homebuyers in the current scenario.
NRIs keep the sector going
Even when domestic housing demand fluctuates, there is steady demand from NRI buyers, something that has propped up the residential sector in its most turbulent times. As a result, the growing NRI transaction volumes have made developers sit up and take notice. Many developers are even tailoring projects to attract NRIs with specific USPs including amenities and quality of lifestyles that they are used to abroad and also security features, special payment plans and closeness to the airport among others.
In fact, several NRIs are buying property in India for usage whenever they come down to India as a second home of sorts while some are also investing for shifting back at the time of retirement. Many NRIs are also investing in metro cities, particularly in luxury and premier housing projects in order to maintain their living standards when in India.
Smart homes with universal remote controls, smart apps which can control home functions, security solutions and other advanced technologies are steadily becoming preferred solutions for well-heeled buyers willing to pay for the same. The real estate sector is also embracing new trends like IoT, automation and other advanced disruptors which will slowly gain more traction over the next few years.
Purchases go digital
Proptech has been a major market disruptor with the consumer now being the king. He/she can now easily go online, check out all properties available, do research, learn more about the location, amenities and the developer while also checking the RERA website for more details and authenticity.
Thereafter, he/she can apply for financing online and even have site visits arranged by the proptech solutions provider. Clients are now going online increasingly when it comes to buying property. This is where transparency and quality content are both required for developers in order to address all queries and concerns of prospective buyers digitally.